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Turn Your Existing
Multifamily Land into
New Rental Income.

Add Up To 8 Rent-Ready Units To Any California Multifamily Property. No New Land. No Rezoning. First Rent In Months, Not Years.

8–13%
Target unlevered yield on cost
450+
Units delivered across California
90+
Cities with units installed
$0
Land cost: deploy on existing parcels
Operating in San Jose? It is our #1 city: 52 homes built, 109 across the South Bay. See the San Jose market page
Multifamily Underwriter

Underwrite Your Next Units.

Model your program economics by unit type, rent, and operating assumptions, then compare against a conventional build using standard DCF methodology. See exactly what speed is worth.

Yield On Cost
8.8%
All-In Basis · Before Speed Credit
+1.7 Pts
Time-Adjusted Yield On Cost
10.5%
After Speed Premium Credit
Development Spread
+381 Bps
Vs. 5.0% Market Cap · Target 150+ Bps
5-Yr IRR
22.5%
Unlevered · Includes Build Period
Months Saved
10
Faster To First Rent Vs. A 14-Month Conventional Build
Time-To-Value Advantage

Modular Speed Premium

$307,440

Equivalent To 15.9% Of Total Program Cost, Credited Against Your Basis.

Net Income Acceleration
$141,600
Carry Cost Savings
$96,000
Construction Interest Saved
$69,840
Cost Per Unit
$241,092$202,662
Program Basis
$1,928,736$1,621,296
Each Extra Month Of Delay Costs
$30,744
Same Deal, Built Two Ways: Standard DCF
Built With Abodu
22.5%
+3.9 Pts
Conventional Build
18.6%

Identical rents, costs, and exit assumptions: an unlevered monthly DCF over your hold period. The only difference is time: when rent starts, and how long carry and construction interest run.

Full Underwriting Detail
Gross Potential Income$268,800
Effective Gross Income$255,360
Operating Expenses$63,840
Property Tax (Program)$21,600
Net Operating Income$169,920
NOI Per Unit$21,240
Total Program Cost$1,928,736
Cost Per Sq Ft$466
NOI Margin67%
Rent-To-Cost Ratio13.9%
Breakeven Occupancy11%
Payback Period11.4 Yrs
Stabilized Value$3,398,400
Development Profit$1,469,664
Development Margin76%
Equity Multiple2.5x

What You're Deploying.

Three unit tiers built to the same factory standard. HCD-approved, non-combustible cladding, WUI-rated assemblies, full-size appliances.

From Permit to Rent-Ready: How the Program Works.

Factory production and site preparation run concurrently. That's why the timeline is weeks, not months.

13–21Weeks

From signed agreement to rent-ready units. Permitting timeline is jurisdiction-dependent and runs before factory start.

Permitting2–8 weeks (site-dependent)
Agreement + ScopingWeeks 1–2
Site Surveys + EngineeringWeeks 2–4
Concurrent
Factory BuildWeeks 4–12
Site Work: Foundations, Utilities, StagingWeeks 4–12
Delivery + Set + COWeeks 12–13

Why Modular Beats Stick-Built for Multifamily ADU Programs.

Per-unit construction costs are in the same range. The financial advantage is in time. Every month of construction is a month of foregone rent and a month of carrying costs. Compressing the build timeline by 6 to 12 months changes the effective cost basis and yield on cost materially.

DimensionConventional stick-builtAbodu modular
Building approvalLocal plan check, 4–8 months, multiple correction roundsHCD state approval: building is pre-approved before site permit is filed
On-site construction8–14 months per unitUp to 4 units installed per day
Permitting pathwayDiscretionary in many jurisdictionsMinisterial under Gov. Code §65852.2
Pricing certaintySubject to change orders and material escalationLocked at MSA execution
Contractor coordinationGC + subs + architect + engineerOne team, one agreement
Quality controlField-dependent, weather-exposedFactory-controlled, climate-protected
Fire resistanceWood-frame, limited WUI complianceNon-combustible cladding, WUI-rated
Cost of delay6–12 months of foregone rent + carrying costsSpeed premium: rent starts months sooner

Your Properties Are Underbuilt. Abodu Fixes That.

Every multifamily parcel in California with unused setback space is a capital deployment opportunity that did not exist before January 2025. SB 1211 removed the regulatory barriers, and Abodu removes the execution risk. A program lead responds within one business day with a property-specific feasibility assessment and indicative pricing. No cost, no obligation.

Enterprise & Multifamily

Request Your Feasibility Assessment.

Tell us about your property or portfolio. A program lead responds within one business day with a property-specific feasibility assessment and indicative pricing. No cost, no obligation. Prefer email? Reach us at enterprise@abodu.com.

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FAQ

Frequently Asked Questions About SB 1211 and Multifamily ADUs.

How Many ADU Units Can I Add To My Multifamily Property Under SB 1211?

SB 1211 allows multifamily property owners to add up to 8 detached ADUs per property, provided the total number of ADUs does not exceed the number of existing units on the property. No rezoning, no conditional use permit, and no discretionary review required. The legislation took effect January 1, 2025. Use the calculator to model the unit count and yield on a specific property.

Why Is Permitting Faster With Abodu Than With Conventional Construction?

Every Abodu unit carries California HCD (Department of Housing and Community Development) insignia. This means the building itself is already approved at the state level before your site permit is even filed. Local jurisdictions review only the foundation design and site-specific utility connections. There is no local plan check on the unit itself. For operators in cities where Abodu maintains pre-approved plan sets (90+ California municipalities), local review can be reduced even further.

How Fast Is The Physical Installation Once Site Infrastructure Is Complete?

Abodu installs up to 4 units per day once foundations are poured and utility connections are in place. Each unit is craned into position and connected to pre-stubbed utilities in a matter of hours. This is orders of magnitude faster than conventional stick-built construction, which typically requires 8 to 14 months of on-site framing, mechanical, electrical, plumbing, and finishing work per unit.

Does Adding ADUs Under SB 1211 Require Additional Parking?

No. California law prohibits local jurisdictions from imposing parking requirements on ADUs. This includes situations where existing parking spaces are displaced by ADU placement. No replacement parking is required.

What Is The Minimum Unit Commitment For Enterprise Pricing?

Enterprise program pricing tiers begin at 5 units, with indicative pricing available for smaller commitments starting at 1 unit. Volume discount tiers apply at 10, 25, and 50+ units. All pricing is locked at MSA execution. No change orders.

What Are The Fire Resistance Specifications On Abodu Units?

Abodu units are manufactured with non-combustible cladding systems and meet California WUI (Wildland-Urban Interface) zone requirements. Factory quality control ensures consistent fire-resistance ratings across every unit. This matters for two reasons: tenant safety and insurance underwriting. Properties in fire-prone areas increasingly face coverage denials or FAIR Plan-only options. Abodu's construction specifications support insurability in zones where conventional wood-frame construction may not.

How Are ADUs Assessed For Property Tax Purposes?

Each ADU is assessed as a separate improvement on the existing parcel. The ADU does not trigger reassessment of the primary property under Proposition 13. Property tax on the ADU is based on its construction cost. Operators should consult with their tax advisor for property-specific assessment projections.

Are ADUs Added Under SB 1211 Subject To Local Rent Control?

No. ADUs constructed after January 1, 2020 are exempt from local rent stabilization ordinances under California Civil Code §1947.12. This applies regardless of whether the primary property is subject to rent control. For operators in rent-controlled jurisdictions like the City of Los Angeles, this is a significant advantage: ADU rents are set at market rate and are not subject to the annual allowable increase cap.

Can ADUs Added Under SB 1211 Be Sold As Condominiums?

Under AB 1033, California cities may adopt local ordinances permitting the separate sale of ADUs as condominiums. Not all cities have opted in. Where available, this creates an additional exit strategy beyond rental hold. Abodu can advise on AB 1033 status in specific jurisdictions during the portfolio review.

Can Each ADU Be Individually Metered For Utilities?

Yes. Each unit can be separately metered for electricity, water, and gas, allowing full utility cost pass-through to tenants. Units operate as standard rental apartments with independent utility accounts.

Can Abodu Units Be Financed Separately From The Primary Property?

ADU financing structures vary by lender. Some operators finance ADU programs as capital improvements against the existing asset. Others use construction-to-permanent loans sized against the incremental NOI. Abodu does not provide financing directly, but our program documentation is structured to support institutional underwriting, including unit specifications, installation timelines, and pro forma assumptions.

What Determines The Overall Project Timeline?

Abodu controls two phases: factory production and unit installation. Both are fast and predictable. The variable is site infrastructure preparation, which depends on property-specific conditions. Electrical panel capacity, sewer line connections, water service upgrades, and third-party utility approvals can vary significantly by property and jurisdiction. Some sites are ready in weeks. Others require months of utility coordination. During the portfolio review, our engineering team assesses each property individually and identifies infrastructure requirements before any commitment is made.

What Site Conditions Can Extend The Timeline?

The most common factors are: electrical panel upgrades (particularly on older properties with limited capacity), sewer lateral replacements or upsizing, water service upgrades to accommodate additional units, fire access and setback constraints, and third-party utility approvals from agencies outside the local building department (such as LADWP, SoCalGas, or local water districts). Abodu's site survey identifies these requirements early so there are no surprises after MSA execution.

Does Abodu Handle The Site Infrastructure Work, Or Does The Operator?

Abodu manages all site infrastructure as part of the turnkey scope. Foundation work, utility trenching, electrical and plumbing connections, and crane staging are all included under one master service agreement. You do not need to hire a separate general contractor, civil engineer, or utility coordinator.

How Does HCD State Approval Differ From Local Plan Check?

With conventional construction, the local building department reviews and approves architectural plans, structural engineering, mechanical, electrical, and plumbing systems. This process typically takes 4 to 8 months depending on the jurisdiction and can require multiple rounds of corrections. With HCD-approved units, the state has already reviewed and approved the entire building. The local jurisdiction's scope is limited to the foundation and site connections only. This is the core permitting advantage of factory-built housing under California law.

What Is The Difference Between HCD-Approved Modular And HUD-Code Manufactured Housing?

Abodu units are modular buildings approved by the California Department of Housing and Community Development (HCD) under the California Building Code. They are not HUD-code manufactured homes. The distinction matters for financing, zoning, and property classification. HCD-approved modular units are treated identically to site-built construction for all regulatory purposes, including property tax assessment, financing eligibility, and zoning compliance. HUD-code manufactured homes are regulated federally and may face zoning restrictions in some jurisdictions.

What Cladding And Finish Options Are Available For Enterprise Programs?

Enterprise units are available with multiple non-combustible cladding systems including fiber cement board and batten, aluminum wood-look panels, standing seam metal wall panels, ACM panels, and Millboard composite. TNG Cedar is available for properties in designated WUI zones only. Interior finishes range from standard rental grade to commercial Class A specifications depending on the program tier selected.

What Warranty Coverage Do Abodu Units Carry?

Abodu provides a manufacturer's warranty covering structural, mechanical, electrical, and plumbing systems. Specific warranty terms and durations are detailed in the master service agreement. Units are also covered by applicable California contractor licensing protections under CSLB regulations.

What Happens If A Property Doesn't Pass The Site Feasibility Assessment?

Not every property qualifies. During the portfolio review, Abodu's engineering team evaluates each site for setbacks, utility capacity, crane access, grading, and fire department access. If a property does not meet the requirements for ADU placement, we identify the issue and advise whether remediation is feasible or whether the site should be excluded from the program. There is no cost for the initial feasibility assessment.

Where Does Abodu Operate?

Northern and Southern California. Our factory and logistics are built around California HCD standards, building codes, and site conditions. We currently serve the Bay Area, Greater Los Angeles, Ventura County, and the Inland Empire.

Is There A Model Unit Or Completed Installation I Can Visit?

Yes. Abodu maintains completed installations available for site visits. During the portfolio review, we can arrange a visit to a comparable installation so your team can evaluate construction quality, finishes, and site integration firsthand.